Selling Brand New Home:

[jerseyvillager]

With a group of Villager's last night and had this conversation. Find it hard to believe but maybe it is true. A statement was made that if a person buys a brand new home in TV and decides to sell it before one year passes they must return to The Villages any dollars that are in excess of the original sale price. I find this hard to believe. Any knowledge/comments.

[mulligan]

It's in the paperwork signed when the house is ordered. All profits go to the developer for the first year. Keeps the real estate flippers out. That's a good thing.

[villages07]

JV.... someone who has purchased recently can comment on current practices.

This was the case when I bought in mid 2006 (near the end of the boom). TV developer put this in place to ward off investor/flippers ... those who would buy a home hoping to cash in on a quick profit from appreciation. When the market went bust and subsequently slowed down, this was not so much an issue. I think they also made exceptions back then if someone had a family emergency requiring a quick sale or if the person bought another new TV home.

[BobKat1]

During the boom years a Del Webb community we looked at in AZ at was doing this too.

I'm guessing not so much, if at all, now.

[bike42]

It's in your contract. Resale can be only in the event of death, illness, etc., within one year -- discourages flippers.

[katezbox]

With a group of Villager's last night and had this conversation. Find it hard to believe but maybe it is true. A statement was made that if a person buys a brand new home in TV and decides to sell it before one year passes they must return to The Villages any dollars that are in excess of the original sale price. I find this hard to believe. Any knowledge/comments.

It is one of the reasons that TV did not have the huge spikes in value )and the inevitable crash) like much of the rest of the state and country!)

[Russ_Boston]

That is in my contract (purchased past Dec.)

[skyguy79]

There might (and I do emphasize might) be a way around this if feasible and necessary, and that's to rent for one year with an option to buy at the end of the rental! It's not for everybody, but it might work!

[paulandjean]

I think it only applies when you go thru the "villages" real estate. Do not think it applies with "for sale by owner".

[graciegirl]

I think it only applies when you go thru the "villages" real estate. Do not think it applies with "for sale by owner".

Yes. That is how I understand it. Some flipping does occur. I was watching a Premier that went on the market just one year and one day after purchase of this new home and with nothing I could perceive added, the price asked was 100K more than was originally paid for....and...they got it.

So new folks be sure to know how to look for the price paid for the house so you won't pay more than it is worth. Go to sumterpa.com and type in the number and the first part of the street name...do NOT add way or loop or the second part of the street name.

That is for homes in Sumter county, which is most of them.

[Pturner]

With a group of Villager's last night and had this conversation. Find it hard to believe but maybe it is true. A statement was made that if a person buys a brand new home in TV and decides to sell it before one year passes they must return to The Villages any dollars that are in excess of the original sale price. I find this hard to believe. Any knowledge/comments.

I think it only applies when you go thru the "villages" real estate. Do not think it applies with "for sale by owner".

Hi Paul and Jean,
Are you saying that anyone could buy a brand new TV home and then sell it for profit in under 12 months just by not listing it for sale with the TV sales office? I don't see how that would prevent flipping (at least when home prices are appreciating). Does anyone know if this is correct?

[Debfrommaine]

We signed same paperwork last June - understood maybe a way out if there is a financial hardship....

[Tbugs]

I think that PaulandJean had better take a closer look at their contract. It is not only sales through Villages Realty but any sale. Yes, they will find out and you will owe the money.

[BogeyBoy]

If you sell at a loss in the first year TV makes up the difference. (That's what my contract says when I hold it up to a mirror.)

[Pturner]

If you sell at a loss in the first year TV makes up the difference. (That's what my contract says when I hold it up to a mirror.)

tee hee.